What is the significance of Exhibit C in the Carbones Pizzeria FDD?
Carbones_Pizzeria Franchise · 2025 FDDAnswer from 2025 FDD Document
EXHIBIT C
GUARANTY
IN CONSIDERATION of the [INSERT ONE/DELETE REMAINING ONE] [grant by M & T Pizza Incorporated ("Franchisor") of a Carbone's Pizza franchise to the party named as Franchisee in the Franchise Agreement (the "Franchisee") to which this Guaranty is attached (the "Franchise Agreement")] OR [consent by M & T Pizza Incorporated ("Franchisor") to the assignment of the Franchise Agreement to which this Guaranty is attached (the "Franchise Agreement") to the assignee and party named as the Franchisee in the Franchise Agreement ("Franchisee")], and for other good and valuable consideration, receipt of which is hereby acknowledged, the undersigned hereby guarantee (jointly and severally with one another and all other guarantors of Franchisee, whether such guaranties are entered into prior to or after the date hereof) to Franchisor and to Franchisor's successors and assigns: (a) the payment of all costs and fees required to be paid to Franchisor or its affiliates by Franchisee, whether such costs and fees are provided for in the Franchise Agreement or under any other agreement between Franchisee and Franchisor or an affiliate of Franchisor, and (b) the performance by Franchisee of all its obligations under all such agreements and under all manuals and operating procedures of Franchisor's business system. The undersigned further specifically agree to remain individually bound by all covenants, obligations, and commitments of Franchisee contained in the Franchise Agreement and such other agreements to the same extent as if each of the undersigned had individually been named as Franchisee in the Franchise Agreement and such other agreements, and the undersigned had individually executed the Franchise Agreement and such other agreements.
Source: Item 22 — CONTRACTS (FDD page 30)
What This Means (2025 FDD)
According to the 2025 Carbones Pizzeria Franchise Disclosure Document, Exhibit C contains the Guaranty agreement. This agreement is crucial because it outlines the conditions under which a guarantor (someone other than the franchisee) promises to fulfill the franchisee's financial and operational obligations to Carbones Pizzeria.
Specifically, the Guaranty ensures that if the franchisee fails to pay required costs and fees or does not perform their obligations under the Franchise Agreement or any other agreements with Carbones Pizzeria, the guarantor becomes responsible. This includes adherence to all manuals and operating procedures of the Carbones Pizzeria business system. The guarantor essentially agrees to be bound by the same covenants, obligations, and commitments as the franchisee, as if they were individually named in the Franchise Agreement.
For a prospective Carbones Pizzeria franchisee, this means that if they require a guarantor to secure the franchise, the guarantor must fully understand the extent of their responsibilities. The guarantor's commitment covers not only financial obligations but also the operational performance of the franchise, ensuring adherence to Carbones Pizzeria's standards and procedures. This arrangement provides Carbones Pizzeria with an additional layer of security, ensuring that the franchise operates according to its established business model and that all financial obligations are met, even if the franchisee encounters difficulties.